Logo image of LNR.CA

LINAMAR CORP (LNR.CA) Stock Fundamental Analysis

TSX:LNR - Toronto Stock Exchange - CA53278L1076 - Common Stock - Currency: CAD

52.97  +0.13 (+0.25%)

Fundamental Rating

6

Overall LNR gets a fundamental rating of 6 out of 10. We evaluated LNR against 4 industry peers in the Automobile Components industry. While LNR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LNR scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year LNR was profitable.
In the past year LNR had a positive cash flow from operations.
In the past 5 years LNR has always been profitable.
Each year in the past 5 years LNR had a positive operating cash flow.
LNR.CA Yearly Net Income VS EBIT VS OCF VS FCFLNR.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

1.2 Ratios

The Return On Assets of LNR (5.37%) is better than 100.00% of its industry peers.
LNR has a Return On Equity of 10.33%. This is amongst the best in the industry. LNR outperforms 100.00% of its industry peers.
The Return On Invested Capital of LNR (8.16%) is better than 100.00% of its industry peers.
LNR had an Average Return On Invested Capital over the past 3 years of 7.37%. This is in line with the industry average of 7.56%.
The last Return On Invested Capital (8.16%) for LNR is above the 3 year average (7.37%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.37%
ROE 10.33%
ROIC 8.16%
ROA(3y)5.26%
ROA(5y)5.03%
ROE(3y)9.15%
ROE(5y)8.91%
ROIC(3y)7.37%
ROIC(5y)7.16%
LNR.CA Yearly ROA, ROE, ROICLNR.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

The Profit Margin of LNR (5.58%) is better than 100.00% of its industry peers.
LNR's Profit Margin has declined in the last couple of years.
LNR has a Operating Margin of 8.81%. This is amongst the best in the industry. LNR outperforms 100.00% of its industry peers.
LNR's Operating Margin has declined in the last couple of years.
The Gross Margin of LNR (14.24%) is better than 75.00% of its industry peers.
In the last couple of years the Gross Margin of LNR has declined.
Industry RankSector Rank
OM 8.81%
PM (TTM) 5.58%
GM 14.24%
OM growth 3Y2.89%
OM growth 5Y-4.85%
PM growth 3Y2.5%
PM growth 5Y-7.81%
GM growth 3Y0.08%
GM growth 5Y-3.49%
LNR.CA Yearly Profit, Operating, Gross MarginsLNR.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LNR is creating some value.
LNR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LNR has less shares outstanding
The debt/assets ratio for LNR is higher compared to a year ago.
LNR.CA Yearly Shares OutstandingLNR.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
LNR.CA Yearly Total Debt VS Total AssetsLNR.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.2 Solvency

LNR has an Altman-Z score of 2.52. This is not the best score and indicates that LNR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.52, LNR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of LNR is 7.21, which is on the high side as it means it would take LNR, 7.21 years of fcf income to pay off all of its debts.
LNR's Debt to FCF ratio of 7.21 is on the low side compared to the rest of the industry. LNR is outperformed by 75.00% of its industry peers.
LNR has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
LNR has a Debt to Equity ratio of 0.42. This is in the better half of the industry: LNR outperforms 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 7.21
Altman-Z 2.52
ROIC/WACC1.03
WACC7.93%
LNR.CA Yearly LT Debt VS Equity VS FCFLNR.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.3 Liquidity

LNR has a Current Ratio of 1.79. This is a normal value and indicates that LNR is financially healthy and should not expect problems in meeting its short term obligations.
LNR has a better Current ratio (1.79) than 75.00% of its industry peers.
LNR has a Quick Ratio of 1.79. This is a bad value and indicates that LNR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.99, LNR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.79
Quick Ratio 0.99
LNR.CA Yearly Current Assets VS Current LiabilitesLNR.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

5

3. Growth

3.1 Past

LNR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.67%, which is quite good.
Measured over the past years, LNR shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.18% on average per year.
Looking at the last year, LNR shows a quite strong growth in Revenue. The Revenue has grown by 14.14% in the last year.
Measured over the past years, LNR shows a small growth in Revenue. The Revenue has been growing by 5.02% on average per year.
EPS 1Y (TTM)18.67%
EPS 3Y22.13%
EPS 5Y-0.18%
EPS Q2Q%6.33%
Revenue 1Y (TTM)14.14%
Revenue growth 3Y18.73%
Revenue growth 5Y5.02%
Sales Q2Q%8.28%

3.2 Future

The Earnings Per Share is expected to grow by 13.29% on average over the next years. This is quite good.
Based on estimates for the next years, LNR will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
EPS Next Y11.97%
EPS Next 2Y2.8%
EPS Next 3Y13.29%
EPS Next 5YN/A
Revenue Next Year10.02%
Revenue Next 2Y4.69%
Revenue Next 3Y4.14%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
LNR.CA Yearly Revenue VS EstimatesLNR.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B
LNR.CA Yearly EPS VS EstimatesLNR.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 5.31, the valuation of LNR can be described as very cheap.
LNR's Price/Earnings ratio is a bit cheaper when compared to the industry. LNR is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.43. LNR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.71, the valuation of LNR can be described as very cheap.
LNR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, LNR is valued rather cheaply.
Industry RankSector Rank
PE 5.31
Fwd PE 5.71
LNR.CA Price Earnings VS Forward Price EarningsLNR.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LNR is valued a bit cheaper than 75.00% of the companies in the same industry.
LNR's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 9.39
EV/EBITDA 3.21
LNR.CA Per share dataLNR.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

LNR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LNR may justify a higher PE ratio.
A more expensive valuation may be justified as LNR's earnings are expected to grow with 13.29% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y2.8%
EPS Next 3Y13.29%

5

5. Dividend

5.1 Amount

LNR has a Yearly Dividend Yield of 1.89%.
LNR's Dividend Yield is slightly below the industry average, which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.30, LNR has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.89%

5.2 History

On average, the dividend of LNR grows each year by 12.87%, which is quite nice.
LNR has been paying a dividend for at least 10 years, so it has a reliable track record.
LNR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.87%
Div Incr Years4
Div Non Decr Years4
LNR.CA Yearly Dividends per shareLNR.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8

5.3 Sustainability

LNR pays out 10.04% of its income as dividend. This is a sustainable payout ratio.
LNR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP10.04%
EPS Next 2Y2.8%
EPS Next 3Y13.29%
LNR.CA Yearly Income VS Free CF VS DividendLNR.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
LNR.CA Dividend Payout.LNR.CA Dividend Payout, showing the Payout Ratio.LNR.CA Dividend Payout.PayoutRetained Earnings

LINAMAR CORP

TSX:LNR (2/14/2025, 7:00:00 PM)

52.97

+0.13 (+0.25%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)03-05 2025-03-05/amc
Inst Owners19.65%
Inst Owner ChangeN/A
Ins Owners33.54%
Ins Owner ChangeN/A
Market Cap3.21B
Analysts76
Price Target77.35 (46.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.89%
Yearly Dividend0.88
Dividend Growth(5Y)12.87%
DP10.04%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.69%
Min EPS beat(2)-0.57%
Max EPS beat(2)1.94%
EPS beat(4)3
Avg EPS beat(4)9.57%
Min EPS beat(4)-0.57%
Max EPS beat(4)24.48%
EPS beat(8)6
Avg EPS beat(8)8.15%
EPS beat(12)9
Avg EPS beat(12)8.2%
EPS beat(16)13
Avg EPS beat(16)16.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-4.21%
Max Revenue beat(2)-1.47%
Revenue beat(4)2
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-4.21%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)2.28%
Revenue beat(12)9
Avg Revenue beat(12)2.5%
Revenue beat(16)12
Avg Revenue beat(16)3.03%
PT rev (1m)-0.22%
PT rev (3m)-9.18%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-24.94%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-4.38%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)-12.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.94%
Valuation
Industry RankSector Rank
PE 5.31
Fwd PE 5.71
P/S 0.3
P/FCF 9.39
P/OCF 3.11
P/B 0.56
P/tB 0.95
EV/EBITDA 3.21
EPS(TTM)9.98
EY18.84%
EPS(NY)9.28
Fwd EY17.52%
FCF(TTM)5.64
FCFY10.65%
OCF(TTM)17.02
OCFY32.13%
SpS175.65
BVpS94.91
TBVpS55.83
PEG (NY)0.44
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.37%
ROE 10.33%
ROCE 11.09%
ROIC 8.16%
ROICexc 9.04%
ROICexgc 13.11%
OM 8.81%
PM (TTM) 5.58%
GM 14.24%
FCFM 3.21%
ROA(3y)5.26%
ROA(5y)5.03%
ROE(3y)9.15%
ROE(5y)8.91%
ROIC(3y)7.37%
ROIC(5y)7.16%
ROICexc(3y)8.47%
ROICexc(5y)8.14%
ROICexgc(3y)12.6%
ROICexgc(5y)12.21%
ROCE(3y)10.02%
ROCE(5y)9.74%
ROICexcg growth 3Y2.08%
ROICexcg growth 5Y-1.84%
ROICexc growth 3Y7.08%
ROICexc growth 5Y-1.89%
OM growth 3Y2.89%
OM growth 5Y-4.85%
PM growth 3Y2.5%
PM growth 5Y-7.81%
GM growth 3Y0.08%
GM growth 5Y-3.49%
F-Score6
Asset Turnover0.96
Health
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 7.21
Debt/EBITDA 1.6
Cap/Depr 119.9%
Cap/Sales 6.48%
Interest Coverage 250
Cash Conversion 68.18%
Profit Quality 57.56%
Current Ratio 1.79
Quick Ratio 0.99
Altman-Z 2.52
F-Score6
WACC7.93%
ROIC/WACC1.03
Cap/Depr(3y)104.5%
Cap/Depr(5y)103.3%
Cap/Sales(3y)5.79%
Cap/Sales(5y)5.98%
Profit Quality(3y)55.58%
Profit Quality(5y)143.5%
High Growth Momentum
Growth
EPS 1Y (TTM)18.67%
EPS 3Y22.13%
EPS 5Y-0.18%
EPS Q2Q%6.33%
EPS Next Y11.97%
EPS Next 2Y2.8%
EPS Next 3Y13.29%
EPS Next 5YN/A
Revenue 1Y (TTM)14.14%
Revenue growth 3Y18.73%
Revenue growth 5Y5.02%
Sales Q2Q%8.28%
Revenue Next Year10.02%
Revenue Next 2Y4.69%
Revenue Next 3Y4.14%
Revenue Next 5YN/A
EBIT growth 1Y25.08%
EBIT growth 3Y22.16%
EBIT growth 5Y-0.08%
EBIT Next Year96.76%
EBIT Next 3Y28.22%
EBIT Next 5YN/A
FCF growth 1Y179.75%
FCF growth 3Y-85.82%
FCF growth 5Y-53.74%
OCF growth 1Y122.24%
OCF growth 3Y-17.9%
OCF growth 5Y2.8%